Reference no: EM13899344
Alexander Corporation reports the following components of stockholders equity on December 31, 2013:
Common stock $ 25 par value, 50,000 shares authorized,
30,000 shares issued and outstanding . . . . . . . . . . . . . . . . . . . . . $ 750,000
Paid in capital in excess of par value, common stock . . . . . . . . 50,000
Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 340,000
Total stockholders equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,140,000
In year 2014, the following transactions affected its stockholders equity accounts.
Jan. 2 Purchased 3,000 shares of its own stock at $ 25 cash per share.
Jan. 7 Directors declared a $ 1.50 per share cash dividend payable on Feb. 28 to the Feb.
9 stockholders of record. Feb. 28 Paid the dividend declared on January 7.
July 9 Sold 1,200 of its treasury shares at $ 30 cash per share.
Aug. 27 Sold 1,500 of its treasury shares at $ 20 cash per share.
Sept. 9 Directors declared a $ 2 per share cash dividend payable on October 22 to the September 23 stockholders of record.
Oct. 22 Paid the dividend declared on September 9.
Dec. 31 Closed the $ 52,000 credit balance (from net income) in the Income Summary account to Retained Earnings.
Required:
1. Prepare journal entries to record each of these transactions for 2014.
2. Prepare a statement of retained earnings for the year ended December 31, 2014.
3. Prepare the stockholders equity section of the company's balance sheet as of December 31, 2014.